Xcel Energy announces all-source generation RFP

Journal-Advocate staff

Posted:
03/19/2013 12:27:17 PM MDT

Xcel Energy has identified a resource need of approximately 250 megawatts of electric generation capacity for its Colorado customers between now and the end of 2018, and will seek power supplies to meet that need through an "all-source" request for proposals (RFP) issued today by the company.

In addition, through this RFP process, the company will be evaluating whether any proposals can serve as economic alternatives to the planned fuel switching of Xcel Energy's Arapahoe 4 and Cherokee 4 generating units, to natural gas from coal.

The RFP is part of the company's 2011 Electric Resource Plan (ERP), approved by the

Colorado Public Utilities Commission (CPUC or commission) this week. All forms of electric generation supply technology greater than 10 megawatts - both fossil fuel and renewable - can be bid.

"We greatly appreciate the fact that, in our effort to secure additional wind energy that is economic for our customers, the Commission has given us a chance to pursue wind generation on a fast track," said David Eves, president and CEO of Public Service Co. of Colorado, an Xcel Energy company.

Last week, the CPUC approved an expedited, early wind bid RFP process that would allow

developers to submit bids that take advantage of federal Production Tax Credit (PTC), before it expires at the end of 2013.

Wind developers must have spent a certain percent of their projects total cost - as yet to be determined at the federal level - by the end of the year, to qualify for the PTC.

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Therefore, wind bids that incorporate the benefits of the PTC will be due back to the company April 30.

Pending the company's review of those bids and other regulatory proceedings, Xcel Energy estimates it would begin negotiating wind power purchase agreements in approximately mid-June. A CPUC decision as to the acquisition of any PTC wind bid is proposed for Oct. 9.

The bids and other regulatory proceedings, a CPUC decision on the company's proposed portfolios of generation resources is expected by Dec. 9. Xcel will host a pre-bid conference with parties interested in offering power supply proposals to the company through this RFP on April 9, 2013 in Denver.

"While our need for additional power supplies in this ERP are more modest than in the past, our commitment to maintaining system reliability and addressing the environment, at a competitive price for our customers, remains critical to our efforts," Eves added.

Complete RFP documents related to the process and more information on the pre-bid conference can be found online at xcelenergy.com About Us Projects and RFPs Public Service Company of Colorado (PSCo) 2013 All-Source Solicitation .

One megawatt of generation in Colorado typically serves the needs of approximately 750 homes. Xcel Energy currently has about 7,800 megawatts of generation capacity available on its system, either owned or secured through power-purchase agreements.

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